Ferretti Yachts Purchased By Chinese Industry Firm

Ferretti Yachts was recently purchased by a Chinese company which bought a 75% position in the Italian yacht manufacturer for 374 million euros ($480 million USD) in the latest of a series of large Chinese acquisitions across Europe.

Shandong Heavy Industry Group-Weichai Group said it would also assist Ferretti Yachts expand yacht distribution in China and other emerging markets throughout Asia. “Developing the yacht business is one of the group’s strategic goals for the next 5 years,” commented SHIG-Weichai Group’s chairman, Tan Xuguang.

The deal is part of a debt restructuring for Ferretti, which was hurt by the 2008 global crisis and a downturn in new yacht demand. It includes an equity investment of 178 million euros ($230 million) and debt financing of 196 million euros ($250 million).

Ferretti, one of the world’s biggest luxury yacht manufacturers, owns 8 shipyards in Italy and one in the United States (Miami, Florida) with nearly 2,000 employees. Ferretti’s 8 brands include Pershing Yachts, Riva Yachts, Bertram Sportfish and CRN Superyachts.

SHIG-Weichai Group, based in the eastern Chinese city of Jinan, manufactures commercial vehicles, construction machinery and other heavy duty industrial products. It entered the marine engine business in 2009 by acquiring France’s Moteurs Baudouin SA.

Ferretti Group’s chairman, Norberto Ferretti, said the new alliance will give the company a sound capital base and expanded sales potential. “China is one of the most rapidly developing countries for the yachting sector and has great potential for the coming five to 10 years,” said Ferretti.